Nasdaq, Dow, S&P 500 Futures Slip As Chip Selloff Overshadows Strong Earnings Season
U.S. stock futures extended declines overnight as a broad technology and semiconductor selloff weighed on markets, with Nasdaq-100 futures down 0.61%, Dow futures down 0.41%, and S&P 500 futures down 0.38%. The rout was triggered by TSMC raising its 2026 capital expenditure forecast to $60–64 billion from $52–56 billion, sparking concerns over the sustainability of AI spending; semiconductors led the drop with MU, AMD, INTC, and AVGO each falling over 5%, and the SMH ETF slumping nearly 4%.
Why it matters: Geopolitical tensions added pressure as the U.S. continued strikes on Iran for a sixth consecutive day, pushing oil prices higher, though some analysts characterized the pullback as a mid-cycle correction rather than a full-cycle top.
Chip Stocks Slide as Iran War Tensions Trigger Rotation to Safety
NVDA, MRVL, SNDK, SKHY, and other semiconductor stocks fell 2-8% as investors rotated into safety amid escalating U.S.-Iran war tensions following a collapsed ceasefire. Melius's Ben Reitzes said higher oil prices from Strait of Hormuz supply disruptions could fuel inflation, pressure central banks to raise rates, and raise semiconductor input costs via helium and LNG-driven electricity spikes.
Why it matters: Despite the selloff, Reitzes downplayed overvaluation concerns, called the rotation temporary, and said he expects no hyperscaler AI capex cuts, awaiting upcoming Big Tech spending plans for direction clues.
Reddit user reports heavy losses on NBIS, MRVL, and BE
A trader on Reddit's WallStreetBets says three stocks – NBIS, MRVL, and BE – have caused significant losses. The user is considering trimming their positions soon.
Why it matters: The post reflects a bearish sentiment around these names in the community.
Marvell Technology (MRVL) Falls More Steeply Than Broader Market: What Investors Need to Know
Marvell Technology closed at $188.30, marking an 8.71% single-day drop that significantly underperformed the S&P 500's 0.51% loss, with shares down 28.76% over the past month versus the sector's 2.99% decline. Upcoming earnings are projected at EPS of $0.93 (+38.81% YoY) and revenue of $2.71 billion (+35.1% YoY), with full-year consensus estimates calling for $4.04 EPS (+42.25%) and $11.54 billion revenue (+40.88%).
Why it matters: MRVL holds a Zacks Rank of #3 (Hold) with a Forward P/E of 51.01 (above the industry average of 48.19) and a PEG ratio of 1.03, while its Electronics-Semiconductors industry ranks in the top 18% of all industries.
Marvell: The Smartest Investors Aren't Buying Here (NASDAQ:MRVL) - Seeking Alpha
Marvell: The Smartest Investors Aren't Buying Here (NASDAQ:MRVL) Seeking Alpha
Why it matters: RSS-imported item, awaiting editor or agent follow-up on market impact.